IPT rate

[Simon Hickman]

Any best guesses for the new rate of IPT following the emergency budget?

Obviously I don't want it to rise but it might be inevitable....

[Michael Cranny]

My uninformed guess is vat itself to 20% Ipt to 7.5%

[Simon Hickman]

Germany and France are all well in excess of 7.5% (France apparantly has a rate of 30% for non industrial fire according to a website by TMF http://www.tmf-vat.com/insurance-premium-tax)

If it goes up I'd probably guess 10 to 12.5%....

Any more guesses?

[James Sharp]

10%. Shall we have a sweepstake?

I'll put a fiver on the nose for 10%

[davidmd]

I've said this before on here .................... pray do not speculate on tax increases as for all you know HMRC may visit this forum and then realise a tax increase is a jolly good idea.

Let's all keep schtum !!!!!

[pjhayman]

There is an inevitability about a hike in IPT - the ubiquitous soft touch.

I have argued for some time that IPT @ 17.5% on travel insurance is unjust. This rate was initially introduced in an attempt to deter travel agents from giving holiday discounts on the condition that travel insurance was purchased as part of a package, thereby forcing customers to pay more for their travel insurance and use a specific provider. As the travel industry lost out years ago to the web and other direct channels (sadly not brokers) it is now an anachronism.

I am not a betting man but given that IPT equivalent rates are higher than 5% elsewhere in Europe - odds on I'd say

[Simon Hickman]

Originally Posted by davidmd

I've said this before on here .................... pray do not speculate on tax increases as for all you know HMRC may visit this forum and then realise a tax increase is a jolly good idea.

Let's all keep schtum !!!!!

Quote from IT:
"The British Insurance Brokers Association (Biba) and the Association of British Insurers (ABI) said that they would be lobbying the Treasury in the run-up to the emergency Budget on June 22 not to increase the tax."

I don't think HMRC will need to worry about what we say on here!

[Simon Hickman]

IPT will be 6% and for travel insurance 20% budget announcement.